Saudi building sector to rebound

Thursday, 27 January 2011 05:00

The value of construction projects in Saudi Arabia is expected to jump to about 322 billion Saudi riyals (Dh315.38 billion) next year from 260 billion riyals in the current year, Jeddah-based Okaz Daily reported recently citing an executive.

The Saudi contracting sector suffers from financing and supervisory challenges in addition to other problems relating to the prerequisites of government contracts, Fahd Al Hammadi, head of the contracting division at the Riyadh Chamber of Commerce and Industry, said according to the paper.

Government contracts should be modernised and the Saudi finance ministry is expected to adopt soon a new contract formula that will benefit both the private sector and the state and will put contractors at ease, Al Hammadi added.